IHK Berlin

Residence permit for self-employment (Art. 21 (1) Residence Act [Aufenthaltsgesetz])

German Version

General

You are a non-EU citizen and planning to set up a business in Berlin and apply for a visa/residence permit from your consulate or embassy or the immigration authority? If so, you should consider the following tips in addition to the general formalities. Please also note the checklist on the required documents at the end of this page.

The German Residence Act stipulates that the authorities competent for the place of incorporation must be involved in the assessment of the general requirements by the immigration authority. For commercial activities in Berlin, this is usually the IHK Berlin. This is one of a total of 79 IHKs in Germany, the main task of whom is to represent the interests of Berlin’s economy as a whole, including its members and founders.
German version
After assessing the general requirements, the immigration authority requests a statement from the IHK Berlin on the planned business activity. This assessment is not binding, but provides the immigration authority with an orientation for the final decision on the granting of a residence permit.

Experience has shown that the application procedure can be quite lengthy. In order to avoid unnecessary waiting times, your cooperation is particularly important. It is therefore in your own best interest to submit all the necessary documents together with your application in full. Ideally, neither the immigration authority nor the IHK Berlin will have to ask for further information. This makes it possible for the processing by the immigration authority as well as the assessment by the IHK to be carried out swiftly. The immigration authority can then decide quickly whether or not to grant the residence permit.

Business Plan

The application documents to be submitted must always include a meaningful business plan. This plays an important role in assessing the requirements of your intended activity. It should therefore be carefully prepared and describe your project in detail, coherently, comprehensibly, and as concretely as possible. This can be done in English or in German. However, a summary in German is advisable in any case.

Requirements

The following criteria play a central role in the assessment of your business plan by the IHK Berlin, namely whether:
1. there is an economic interest or a regional need,
2. the activity is expected to have a positive impact on the Berlin economy and
3. the financing of the implementation is secured by equity capital or a loan commitment.
The assessment of these prerequisites is based in particular on the viability of the underlying business idea, the applicant's entrepreneurial experience, the level of capital employed, the impact on employment and training, and the contribution to innovation and research.

Economic interest or regional need

An economic interest or regional need may exist, for example, if a sustained improvement in the sales or market opportunities of resident companies is discernible or if a significant number of jobs have been created or safeguarded (credibly demonstrated). The establishment of a production facility, or the marketing of environmentally friendly or innovative products can also justify the existence of the prerequisites. In the case of purely regional consumer-oriented individual or service enterprises, an economic interest is usually not present. Here, however, a regional need could exist if, without the offer, there is an existing or foreseeable undersupply of the region. A regional need may also exist if the offer has a unique selling point. This is particularly necessary if comparable offers already exist in Berlin.

Employment

If other employees are planned in addition to you as managing director, precise information on the number, the respective tasks, and requirements for the position as well as the forms of employment (part-time or full-time), salary, and probable period of activity will be required. The realisation of planned workplaces may be verified after some time.

Revenue forecast and liquidity concept

The revenue forecast for the first three years (in particular the sales expectations) must be explained plausibly, e.g. by calculation of prices, commissions, fees, and be supported if possible with evidence. This is possible if business relationships already exist or (future) customers have been acquired, offers are available, or if projects are planned. A “customer list” is usually not sufficient. Broad assumptions should generally be avoided as they do not represent a comprehensible basis for the assessment. It is also important to conduct competition and market analyses that describe the competitive environment on the one hand and present a concrete demand for your product in a comprehensible manner on the other. The following always applies for the assessment by the IHK Berlin: The more concrete and documented, the better!

Income

It should be noted that according to procedural regulations of Berlin’s immigration authority, an annual net income of EUR 41,000 must be generated for managing directors and other legal representatives of partnerships and corporations. The managing directors of a corporation can provide evidence of corresponding income in the form of a management contract.

Shares

In order to meet the requirements for self-employment as defined by Section 21 (1) AufenthG, the managing directors of a corporation (e.g. GmbH, UG) must (according to procedural information of the Foreigner’s Authority Berlin) also hold the majority of the shares or at least equal shares as the other shareholder(s) in the corporation. The distribution of the shares must be documented in a suitable form (e.g. articles of association or list of shareholders).

Commercial register

In the case of a corporation, entry in the commercial register or at least notarial registration in the commercial register is required.

Please note that the above remarks are by no means exhaustive, but only address some of the potential “stumbling blocks” that may arise during the overall development of your business plan. If there are any uncertainties in the preparation of the business plan, we recommend, for example, consulting a (business) consultant or lawyer with the appropriate specialist knowledge.

Checklist for the IHK-statement

(to be submitted together with the application documents to the foreign representation or immigration authority!)
  • Business plan (including: capital and financing plan, revenue forecast for three years and liquidity plan)
  • Proof of capital or credit commitment
  • Curriculum vitae
  • Proof of qualifications (e.g. university degrees, work experience)
  • Proof of cooperation, declarations of intent or expressions of interest (potential/future) by business partners or customers
if available:
  • (Commercial) rental agreement
  • for GmbH or UG: Certificate of incorporation, articles of association, managing director's contract, excerpt from the commercial register or notarial registration in the commercial register
  • Business registration
You will find a list of further documents and forms that must be provided when submitting your application on the website of the German foreign representation or the immigration authority.

Further forms and documents to be submitted with the application

General information on business plans is available here